STP-DECCAN

MARKET SEGMENTATION, TARGETING AND POSITIONING : 

MARKET SEGMENTATION, TARGETING AND POSITIONING

PREVIEW: 

PREVIEW INTRODUCTION MARKET SEGMENTATION TARGETING POSITIONING CONCLUSION

INTRODUCTION : 

INTRODUCTION Founder – Capt GR Gopinath Retired Army Officer, Ex-NDA Voluntary Retirement in 1979 Founded Deccan Aviation in 1995, offered Helicopter Charter Services In Aug 2003, diversified his business and initiated the Low Cost Airliner Model .

PowerPoint Presentation: 

“I began to feel that the real challenge was in bringing aviation to the common people. Somehow everybody had missed this – this 300 Million middle class has been targetd by manufacturers of TVs, refrigerators, tooth past and shampoo and cosmetics and so on…..” - Capt Gopinath in an interview at IIMB Management Review, March 2005

PowerPoint Presentation: 

VISION To be the preferred airline in India MISSION To demystify air travel in India by providing reliable, low-cost air travel to the common man by constantly driving down the airfare as an on-going mission.

OPPORTUNITY: 

OPPORTUNITY MACRO LEVEL GoI liberalises Aviation Sector Increase in disposable income of middle class Indian customer value his money Growing GDP – ‘INDIA SHINING’ MICRO LEVEL Need of affordable airfare for Indian travelers 5% of 15 million long distance travelers ( AC-I AND AC-II tier) People of smaller town have the capacity but not have choice.

SEGMENTATION CRITERIA: 

SEGMENTATION CRITERIA Geographic City/Metro Size Teir I/ Teir II Cities Demographic Social Class Low, Middle , Upper Behavioural Benefits Speed , Economy , Quality, Service Loyalty Hard-core, Split , Shifting , Switcher Readiness Style Desire, Intention, Interest Attitude towards Service Enthusiastic, Positive, Indifferent, Negative, Hostile

TARGETING: 

TARGETING MIDDLE CLASS PRICE SENSITIVE; VALUE FOR MONEY URBAN SECONDARY AIRPORT CONSUMERS ACCESS & CONNECTIVITY FROM TEIR II/III CITIES SPEED & ECONOMY I & II AC RAIL TRAVELLERS SWITCHERS EXISTING PRICE SENSITVE AIR TRAVELLERS DESIROUS AFFORDABILITY ENTHUSIASTIC & POSITIVE WILLING TO EXPERIMENT

POSITIONING: 

POSITIONING Low Cost Airline For Common Man Substitute for Railway AC I/II Tier Travellers

COMPARISION OF FARES: 

COMPARISION OF FARES Air Deccan Jet Airways Rail I AC Rail II AC Journey Time (Hrs) Route One -Way Fares INR Fares INR Fares INR Fares INR Rail Air Chennai – Bangalore 721 – 1500 1370 – 2970 940 – 1402 614 – 747 7 – 8 1 Delhi - Mumbai 1999 - 5499 3120 - 5610 3303 - 4135 1775 - 2210 17 - 24 2 - 3 Bangalore – Hyderabad 2375 4700 2286 1211 12 1 - CISR, MIT Sloan School of Management, Working Paper No 365

GROWTH IN DOMESTIC SECTOR: 

GROWTH IN DOMESTIC SECTOR - CISR, MIT Sloan School of Management, Working Paper No 365

SERVICE DIFFERENTIATION: 

SERVICE DIFFERENTIATION Simple Product – ‘No Frills’ First Come First Serve Seating Higher Seating Capacity E – Ticketing 24x7 All India Multilingual Call Centre Ticketing Through HPCL and Grocery Stores

POSITIONING OF DIFFERENT CARRIERS - 2006: 

POSITIONING OF DIFFERENT CARRIERS - 2006 - IIM AHEMADABAD W.P. No. 2007-11-03

SUCCESS MANTRA: 

SUCCESS MANTRA Low wages, low airport fees Low costs for maintenance, cockpit training and standby crews due to homogeneous fleet High resource productivity: short ground waits due to simple boarding processes, no air freight, no hub services, short cleaning times Lean sales (high percentage of online sales) Attributes of Low-cost Carriers Narrower seating (higher capacity: 148 vs. 126)· Higher plane utilization (10.7h vs. 8.4h) due to shorter turnaround times· Lower staff costs due to greater productivity, generally lower wages and smaller staff (no service) Lower airport fees at secondary airports and smaller cities No sales commissions due to web sales

DOMESTIC AIR SECTOR MARKET SHARE 2006: 

DOMESTIC AIR SECTOR MARKET SHARE 2006

MERGER & REBRANDING: 

MERGER & REBRANDING October 2007 – Merger with Kingfisher Airlines, Air Deccan was renamed " Simplifly Deccan" New tagline - "The choice is simple“ Acquisition aimed at tapping High flier and Bag packer segments simultaneously Aug 2008 – Deccan becomes Kingfisher Red Latest Tagline – “Fly the Good Times”

MERGER & REBRANDING: 

MERGER & REBRANDING

REPOSITIONING: 

REPOSITIONING AIR DECCAN KINGFISHER RED Low Cost Airline Value-based Low Cost Carrier Outsourced Airport Staff Deccan Employees No frills - Paid Food & Water Hot meals & complimentary Water Normal Interiors Luxurious Interiors No Refund for cancellation Customer friendly cancellation policy